Transfer Account Instructions

Transcription

1 Transfer Accunt Instructins Nte: A Transfer Matrix (shwing which accunts t use nce apprval/crrectness has been determined) is available at the end f this dcument. A transfer accunt is used fr varius types f transactins including: Mving funding fr a prject/ defined activity, Mving prir year expenses frm ne chartfield cmbinatin t anther, Cvering an verdraft, r Mving a balance t clse a prject/chartfield. The guidelines fr apprpriate use f a transfer accunt can vary depending n the fund cdes invlved in the transfer. This dcument prvides guidelines t assist units in determining when use f a transfer accunt is apprpriate within a fund and when a transfer is allwable between funds. A transfer matrix is available n the Financial Operatins (FinOps) website t assist units in determining which transfer accunts t use fr the debit and credit f their Jurnal Entries (JE) nce a transfer via JE has been determined t be apprpriate. This dcument cnveys the same infrmatin as the transfer matrix in a written frm. (The transfer matrix is lcated at the end f this dcument.) Units shuld nt deviate frm this guidance withut prir apprval frm FinOps, which will be granted n a case by case basis. The fllwing fund cdes are used within the General Ledger: General : Spnsred s: (Federal) (Nn Federal) Gift : Designated : Auxiliary s: 5XXXX Plant s: 8XXXX Endwment s: 7XXXX, EXXXX, PXXXX, QXXXX, UXXXX, TXXXX When prcessing jurnals using transfer accunts, it is imprtant t make sure the prper Class Cde is used t ensure that the transfer represents the crrect functin r use f the funds. Jurnals that transfer funding (a bucket f mney fr a specific purpse) between chartfields shuld utilize the Class Grup that reflects the future intended purpse fr the funds, and this Class Grup shuld be the same n bth sides f the transfer entry. Fr example: When the Dean s Office allcates funding fr departmental research frm the Dean s discretinary chartfields t a Faculty s research incentive prject grant, the Dean s discretinary chartfields wuld mst likely have class assciated with them. Hwever, the jurnal used t transfer the funding wuld use Class n bth sides f the entry, t reflect that the intended purpse fr the funding is fr departmental research. Belw is an example f this type f JE: Last Updated: 8/3/18 1

2 Accunt DeptID Prgram Class P/G Amunt Jrn Ref Jrnl Line Descriptin DISCR U , Tsf funding fr dept research RESIN U (1,000.00) Tsf funding fr dept research Jurnals that transfer activity (i.e. expenses incurred in a prir year) between chartfields shuld als have the same Class Grup n bth sides f the transfer entry, and this Class Grup shuld be the same as that assciated with the expenses when they were riginally incurred. Fr example: If the expenses were riginally classified as research and a jurnal needs t be prepared t mve an amunt equivalent t thse expenses frm a prir year t anther set f chartfields, the class cde shuld remain a research class n bth sides f the transfer entry t ensure that the riginal functin assciated with this activity des nt change. Belw is an example f this type f JE: Accunt DeptID Prgram Class P/G Amunt Jrn Ref Jrnl Line Descriptin DISCR U , Tsf FY16 exp t new P/G RESIN U (1,000.00) Tsf FY16 exp t new P/G Occasinally, a class is allwable in ne fund, but nt anther r wuld be mre apprpriate at anther class. When transferring between funds in this situatin, it is mst vital that the first digit (Class Grup) is maintained in the transfer. An example f this wuld be an Organized Research Grant in Spnsred Prgrams (class 22000) with expense verages being mved t a discretinary chartfield in the Gift fund, which wuld use class n the Gift fund side, which wuld maintain the class grup, while signifying that the verages are Departmental Research and nt Organized Research. Departments may transfer prir fiscal year activity that is less than $10,000 via a JE (using revenue r expense accunts) up t 120 days beynd the end f the respective fiscal year (i.e. frm July 1st thrugh Octber 31st). Transfers invlving the General Transfers invlving the General are limited due t the specific nature f the dllars that supprt General activities. Generally transfers in r ut f the fund are unallwable. Hwever, there can be transfer activity within the General between departments. Belw is a listing f allwable transfers invlving the General. Transfers between General ( 10000) chartfields use the fllwing accunts when prcessing the jurnal entry. Accunt Number Accunt Name Trsf Apprp Faculty Salaries Trsf Apprp Staff Salaries Trsf Apprp Fringe Benefits Trsf Apprp Supplies & Other Last Updated: 8/3/18 2

3 Trsf Apprp Equipment GF Apprpriatin Defer/Rec General Rll up Adjust Trsf Apprp Adjustment Trsf Apprp Fin Aid UG Trsf Apprp Fin Aid Grad Trsf Apprp Plant Imp Transfers t cver verdrafts nly fr clsing a chartfield cmbinatin r P/G n either side f the transfer. Always use accunt (Trf t Cver Overdraft) n bth sides f the transfer jurnal entry (JE). If verdraft is in the General ( 10000) Can transfer the verdraft t s 10000, (if it meets applicable dnr restrictins), and 5XXXX (except 52000) The General ( 10000) can generally accept verdrafts frm s 10000, 20000, 25000, 30000, Fr verdrafts in fund 52000, cntact Financial Analysis fr help in determining the best practice in the individual situatin Transfers frm ther funds t fund cst share n a Spnsred Prject is an allwable transfer int Use accunt cde (Nn General Cst Sharing) n bth sides f the JE Spnsred Prject in General Accunt fr Debit , 40000, r 5XXXX (except 52000) Accunt fr Credit Other transfers invlving Spnsred s (s & 25000); cntact yur Spnsred Prgrams Crdinatr fr assistance. Fixed price balance transfers shuld use accunt (Trf t Cver Overdraft) n bth sides f the JE Cvering an verdraft n a Spnsred Prject Use accunt (Trf t Cver Overdraft) n bth sides f the JE ing transfers (except t cver verdrafts) between s and 30000, 40000, r 5XXXX are generally nt allwed. A unit can mve apprpriate expense activity that has psted t the general ledger in the current fiscal year between the tw chartfield cmbinatins as lng as it des nt cause a credit balance n a particular accunt cde n the credit side f the transactin (cannt transfer mre expenses than have been incurred). Activity frm prir years usually cannt be mved in r ut f the General Last Updated: 8/3/18 3

4 ( 10000). Please cntact Financial Operatins fr apprval f an exceptin, which can be attached t yur JE. A unit can mve funds frm a General ( 10000) chartfield t a 30000, r 5XXXX Prject/Grant (P/G) by keeping the funds in General ( 10000) n the receiving unit s P/G. The receiving unit shuld spend the funds using this new chartfield cmbinatin. Transfers frm the General ( 10000) t the Plant s (8XXXX s) are allwable under the fllwing scenaris. T prvide funding fr a cnstructin prject in fund r T prvide funding fr the repair r replacement f equipment in the Departmental Equipment (82000) Once funds are transferred t they cannt be transferred back t the General ( 10000) withut prir apprval frm Financial Operatins Transfers invlving Spnsred s Transfers invlving Spnsred s shuld be discussed with the Spnsred Prgrams Crdinatr fr the prject befre prcessing. Generally, the Spnsred Prgrams Office will prcess the transfers invlving Spnsred Prjects. Fixed price balance transfers these can be transferred t s 10000, and 5XXXX nly. Accunt fr Debit Accunt fr Credit Accunt fr Debit Accunt fr Credit XXXX XXXX Cvering an verdraft n a Spnsred Prject Use accunt (Trf t Cver Overdraft) n bth sides f the transactin Class cdes fr verdraft transfers invlving a Spnsred Prject Spnsred (20000/25000) Class 10000/30000/40000/5XXXX Class 16XXX XXX 21000** 31XXX XX 31100** ** use r 312XX n nn spnsred fund side if Shrtcde being used maps t class r 312XX Last Updated: 8/3/18 4

5 ing General cst sharing n a Spnsred Prject Allwable transfer accunts when funding cst share frm General ( 10000) Accunt fr Debit Accunt fr Credit Spnsred Prject in General Spnsred Prject in General Spnsred Prject in General Spnsred Prject in General Spnsred Prject in General Spnsred Prject in General Spnsred Prject in General Spnsred Prject in General Spnsred Prject in General ing cst share frm a nn general fund surce Accunt fr Debit Spnsred Prject in General , 40000, r 5XXXX (except 52000) Accunt fr Credit All ther transfers are generally unallwable in Spnsred s (s & 25000). Please review the Spnsred Prgrams Cst transfer guidelines at nsferguidelines Transfers invlving the Gift Transfers invlving gift funds are restricted by the Dnr s specified intent fr their gift. Cntact Financial Operatins if there are questins with regard t dnr restrictins. Prvided a transfer meets the Dnr s intent, use the fllwing guidelines t prcess the transfers. Transfers within the Gift ( 30000) Use accunt (Intrafund Transfers Out) n the debit side and accunt (Intrafund Transfers In) n the credit side Transfers t cver verdrafts nly fr clsing a chartfield cmbinatin r P/G n either side f the transfer. Always use accunt (Trf t cver verdraft) n bth sides f the JE. Last Updated: 8/3/18 5

6 If verdraft is in Gift ( 30000) Can transfer the verdraft t 10000, (if it meets dnr restrictins), and 5XXXX (except 52000) Gift fund can accept verdrafts frm ther funds if activity being cvered meets dnr restrictins fr the gift funds used t cver the verdraft , 20000, 25000, 30000, 40000, 5XXXX Transfers t ther funds, excluding verdrafts Can mve expense activity that has psted t the general ledger in the current fiscal year between the tw chartfield cmbinatins as lng as it des nt cause a credit balance n a particular accunt cde n the credit side f the transactin (cannt transfer mre expenses than have been incurred). If transferring expenses t the Gift frm anther set f chartfields make sure the expenses meet dnr intent. Use the incurred expense accunts t cmplete these transactins. Can mve an amunt equivalent t identifiable expenses frm a prir year prviding the expenses meet dnr intent. Use the prper transfer accunts frm the transfer matrix. The amunt must be equivalent t identifiable expenses frm a Statement f Activity (SOA). Include the SOA with the expenses identified as supprt fr the jurnal. Transfers t the Designated r Auxiliary s are nt allwed because transferring funds t r frm unrestricted surces changes the nature f the funds, which is inapprpriate. Cannt take restricted gifts and make them unrestricted Designated r Auxiliary funds. Cannt take unrestricted Designated r Auxiliary funds and make them restricted Gift funds. Transfers t the General ( 10000) are nt allwed A unit can mve funds t a P/G by keeping the fund n the receiving Prject/Grant The receiving unit shuld spend the funds received using this new chartfield cmbinatin. Transfers invlving the Designated and Auxiliary s (excluding 52000) Transfers invlving these Unrestricted s are less restrictive. Many pssible cmbinatins f transfer accunts exist. Refer t the transfer matrix t determine the prper accunt cdes t use. Sme imprtant items t cnsider are: Transfers t cver verdrafts nly fr clsing a chartfield cmbinatin r P/G n either side f the transfer. Always use (Trf t cver verdraft) n bth sides f the JE. If verdraft is in r 5XXXX Can transfer the verdraft t (ccasinally, cntact the Accunting Custmer Service team at the Shared Services Center r Financial Operatins), (if it meets dnr restrictins), and 5XXXX Last Updated: 8/3/18 6

7 Can accept verdrafts frm 10000, 20000, 25000, 30000, 40000, 5XXXX Overdrafts relating t fund (which is used fr recharge activity), cntact Financial Analysis t determine the apprpriate methd t reslve the verdraft. Can transfer verdraft t (if apprved by Financial Analysis), (if it meets dnr restrictins), and 5XXXX cannt accept verdrafts frm any ther chartfield cmbinatin in any ther fund Transfers f activity If the activity is frm a prir fiscal year, use the prper transfer accunts frm the matrix t mve prir year activity between funds when allwable hwever, the amunt must be equivalent t identifiable expenses frm an Statement f Activity (SOA). Include the SOA with the expenses identified as supprt fr the jurnal. If the activity is frm the current year, a unit can mve the expense activity that has psted t the general ledger between the tw chartfield cmbinatins as lng as it des nt cause a credit balance n a particular accunt cde n the credit side f the transactin (cannt transfer mre expenses than have been incurred). Transfers invlving the Plant s Transfers invlving the Plant s are intended t prvide funding fr capital prjects depending n which Plant is invlved. The Plant s are cnsidered nn perating funds, meaning expenses are fr capital related purpses such as repairs, maintenance r space renvatins. Fr all Plant s: See transfer matrix fr the prper accunt cdes t be used fr the transfer The class cde fr these transfers shuld be n bth sides f the JE Fr specific Plant s: Transfers t Cnstructin s (s 80000, 80500) Transfers t these funds are prviding funding fr a cnstructin/renvatin prject See capitalizatin guidelines n the Financial Operatins website relating t cnstructin prjects Transfers t Infrmatin Technlgy (IT) Cnstructin s (s 81000, 81500) Transfers t these funds are prviding funding fr IT infrastructure and sftware develpment r purchase See capitalizatin guidelines n the Financial Operatins website relating t IT prjects Last Updated: 8/3/18 7

8 Transfers t Departmental Equipment s (s 82000, 82500) Transfers t these funds are prviding funding fr current r future equipment purchases/replacements, minr renvatins and ther nn perating expenditures such as repairs and maintenance f physical plant and equipment s cannt be returned nce cmmitted withut prir apprval frm Financial Operatins Transfers t Maintenance Equipment and Reserve ( 83000) Transfers t this fund are frm Auxiliary units with apprved recharge rates thrugh Financial Analysis Transfers are generally equivalent t depreciatin n equipment used in an apprved recharge rate r a calculated amunt fr deferred maintenance f physical plant Transfers invlving the Endwment s Transfers invlving the Endwment s shuld nly be prcessed by Financial Operatins r ther apprved central units. Schls and Clleges shuld nt prcess any Endwment jurnal entries. Cntact the Endwment team fr assistance if yu feel a JE is required at Endwmentfundstaff@umich.edu r Transfers invlving the Agency Transfers ut t Agency units are either paying/reimbursing fr a gd/service r prviding a gift/spnsrship t an utside Agency unit. Transfers in frm an Agency unit culd be cnsidered a gift t the university. Belw is guidance fr transfers ut t Agency units: The University is paying r reimbursing the Agency fr a gd r service, which was prvided by the Agency. The Agency is prviding a gd r service t the University supprted by an invice, which the University is paying fr. (Expense t the University and Revenue t the Agency) The University is reimbursing an Agency fr an expense that shuld have been incurred by the University when it ccurred. (Expense fr the University and Negative Expense fr the Agency) The University is prviding a gift/spnsrship t an utside Agency. Transfers t the Agency are giving away university assets as Agency fund activity is nt legally part f the University f Michigan. Whenever University assets are given away, dnated, r prvide spnsrships, the Cntrller f the University has t give advance written apprval. There are a few instances that can be authrized withut having t btain this apprval frm the Cntrller. Thse instances include the fllwing: A related spnsring unit is transferring funding (smetimes frm a dnr) t a Spnsred Student Organizatin (SSO) t assist the SSO with accmplishing its gals. Last Updated: 8/3/18 8

9 There is a cntractual agreement between the University and the Agency backed up by the signed agreement. An inherent interest exists between the Agency and the University. A Schl r Cllege may be supprting a Student Organizatin in their respective area. Transfers frm an Agency unit t the University: When the University receives, a transfer f funding frm an Agency Unit it culd be cnsidered a gift t the University r a reimbursement f expenses. Transfers f Gifts t the University shuld be recrded as such using accunt n the University side and an expense n the Agency side. In sme instances, accunt may be the apprpriate accunt t use t recrd the revenue. Cntact Financial Operatins if yu are unsure fr a particular situatin. Reimbursements fr expenses that were charged t the University by mistake shuld be recrded as a negative expense n the University side (use the same accunt as the riginal charge being reimbursed) and an expense n the Agency. In all instances, in rder t authrize a transfer f funds t/frm the Agency fund, the Unit invlved with the request t transfer must prvide supprting dcumentatin and/r apprval with their jurnal. Last Updated: 8/3/18 9

10 Transfer Matrix Last Updated: 5/2/18 This chart is meant t prvide the prper accunt cdes t use n transfers after either being apprved by the apprpriate area r deemed apprpriate per the Transfer Accunt Instructin dcument fund n Financial Operatins' website Ntes: Debt related transfers shuld be discussed with the Nn-Current s Supervisr ( ). Student Lan related transfers shuld be discussed with the Student Lans Supervisr ( ) XXXX Endwment s 80XXX, XXX Debit (10000) Cntact the 615- Cntact the Debit (10000) Cntact Spnsred Cntact Spnsred Cntact the 615- Cntact the Endwment Credit (80XXX, 2000, Optin 3, then 2000, Optin 3, then Optin Credit (82000) Prgrams Crdinatr Prgrams Crdinatr 2000, Optin 3, then Optin 4 Optin 4 4 Class n bth sides Class n bth sides Use accunts in the General Transfers accunt grup ( ) Debit (20000) Credit (10000) Debit (fund 25000) Credit (fund 10000) Cntact the , Optin 3, then Optin 4 Cntact the , Optin 3, then Optin 4 Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Debit (30000) Credit (30000) Cntact the , Optin 3, then Optin 4 Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact the , Optin 3, then Optin Debit (40000) Credit (40000) Credit Side Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact the , Optin 3, then Optin Debit (40000) Credit (5XXXX) Cntact the Endwment Cntact the Endwment Cntact the Endwment Cntact the Endwment Cntact the , Optin 3, then Optin Debit (30000) Credit (80XXX, 81XXXX) Class bth sides Debit (40000) Credit (80XXX, Class bth sides Cntact the , Optin 3, then Optin Debit (40000) Credit (82XXX) Class bth sides Cntact the , Optin 3, then Optin 4 Cntact the , Optin 3, then Optin 4 Cntact the , Optin 3, then Optin 4 Debit Side 5XXXX Endwment s 80XXX, 81XXX Cntact the , Optin 3, then Optin 4 Cntact the Endwment Debit (80XXX, Credit (10000) Use Class bth sides Cntact Spnsred Prgrams Crdinatr Cntact the Endwment Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact the Endwment Cntact Spnsred Prgrams Crdinatr Cntact the , Optin 3, then Optin 4 Cntact the Endwment Cntact the , Optin 3, then Optin Debit (5XXXX) Credit (40000) Cntact the Endwment Debit (80XXX, Credit (40000) Use Class bth sides Debit (5XXXX) Credit (5XXXX), when same fund r Debit (5XXXX) Credit (5XXXX), when different funds Cntact the Debit (80XXX, Credit (5XXXX) Class bth sides Fr Med Schl t Debit (80500, 81500) Credit (5XXXX) Use Class bth sides Cntact the Endwment Cntact the Endwment Cntact the Endwment Debit (5XXXX) Credit (80XXX, Class bth sides Fr Med Schl t Debit (5XXXX) Credit (80500, 81500) Use Class bth sides Cntact the Class bth sides Fr s r 81500, use Class Debit (5XXXX) Credit (82000) Class bth sides Fr Med Schl t Debit (5XXXX) Credit (82500) Use Class bth sides Cntact the Endwment Class bth sides Fr s 80500, r use Class Debit (5XXXX) Credit (83000) Class bth sides Cntact the Endwment Class bth sides Fr s 80500, r use Class Cntact the , Optin 3, then Optin 4 Cntact the Cntact the , Optin 3, then Optin 4 82XXX Debit (82XXX) Credit (10000) Use Class bth sides Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact the , Optin 3, then Optin Debit (82XXX) Credit (40000) Use Class bth sides Debit (82000) Credit (5XXXX) Class bth sides Fr Med Schl t Debit (82500) Credit (5XXXX) Use Class bth sides Cntact the Endwment Class bth sides Fr 82500, use Class Class bth sides Fr use Class Class bth sides Fr use Class Cntact the , Optin 3, then Optin 4 Cntact Spnsred Prgrams Crdinatr Cntact Spnsred Prgrams Crdinatr Cntact the , Optin 3, then Optin 4 Cntact the , Optin 3, then Optin 4 Cntact the , Optin 3, then Optin Debit (83000) Credit (5XXXX) Use Class bth sides Cntact the , Optin 3, then Optin 4 Cntact the Endwment Cntact the Endwment Class bth sides Cntact the , Optin 3, then Optin 4 Class bth sides Class bth sides Debit and Credit